Category: State Issues

Technology that slashes costs for healthcare is good for consumers and taxpayers alike. There are those who don’t want to see these new technologies flourish, but, thankfully, these forces of negativity are losing the battle of bringing new technologies into the market. Just like with the disruptive technologies that have helped Uber and Airbnb become household names, tele-health and tele-medicine are disrupting the cartel that forces consumers to pay inflated prices and suffer the inconvenience of travel and time at the optometrist's office to get a prescription for eyeglasses and contact lenses. With the click of a few keys on a computer or smartphone, consumers can receive their prescriptions (signed off by an eye doctor) from the comfort of their own homes. Thanks to this technology, healthy adults only have to go to the eye doctor’s office once every two years for an eye health exam as opposed to once every time a new prescription is needed - unless the medical lobby’s intense influence campaign is successful.

Taxpayers Protection Alliance (TPA) continues to sound the alarm on Democrat Governor Andrew Cuomo’s (N.Y.) nuclear bailout (which took effect April 1) that imposes unreachable and expensive renewable energy mandates on the state. The plan requires half of New York State’s energy to come from carbon-neutral (renewable) sources by 2030 and it was approved by state regulators without the consent of state lawmakers. Ratepayers and taxpayers stand to pay billions of dollars for this crony bailout and the plan has come under consistent fire from a variety of officials and stakeholders. Last week, TPA spearheaded this coalition letter urging “fiscal conservatives” in the New York Senate to do more to speak up and offer ways to stop this bailout from continuing.

When dealing with players enamored by short-cuts to success, former Raiders head coach John Madden famously quipped, “the road to Easy Street goes through the sewer.” His team would be wise to keep this quote in mind as they finance their much-discussed move to Las Vegas on the backs of taxpayers. While the public may assume that tax revenue goes to priorities such as education, health care, and aid to the indigent, governments frequently add billionaire sports executives to the trough. In this case, Nevada agreed to shell out $750 million in tax-exempt municipal bonds for the construction of a new stadium in Las Vegas to lure the Oakland Raiders away from their hometown. While Oakland fans may be bitter about losing the team they’ve cheered (unsuccessfully) for, Alameda County taxpayers should be thrilled that a terrible deal is finally over. Residents, after all, are still $83 million short on a $350 million bond subsidy awarded to the team in 1995. County taxpayers have had to foot a $13 million tab each year since 1995, and will continue to do so through 2025, long after the Raiders are gone. These arrangements completely skew governmental priorities by forcing tax-burdened residents to subsidizing well-heeled executives instead of the very neediest.

As March Madness comes to a close, with the Final Four this weekend and National Championship Monday night, it’s important to remember how outdated bans are failing the intended purpose to prevent betting and instead are leading to the perpetuation of a massive underground illegal economy. Here are some of the numbers, according to the American Gaming Association:

Americans will wager $10.4 billion on March Madness this year, a 13 percent increase over last year

Out of that $10.4 billion wagered, only about $295 million (3 percent) will be wagered legally through Nevada sports books

The remaining $10.1 billion will be spent on illegal offshore websites No sport has taken in more money in a specific month of legal Nevada betting than basketball did in March of 2016. It took in a record $422 Million. March of 2017 is likely to surpass that

The amount of money illegally wagered in the entire U.S. on just the 2017 Super Bowl was $4.51 Billion, nearly identical to the amount wagered legally in all of Nevada across all sports in all of 2016.

President Donald Trump recently designated Federal Communications Commission (FCC) commissioner Ajit Pai to be chairman of the FCC. This choice is an excellent one since Pai was a strong opponent of former Chairman Tom Wheeler’s policy to expand taxpayer-funded municipal broadband networks. Taxpayer-funded municipal broadband networks across the country have failed at an alarming rate. Last year, the Taxpayers Protection Alliance (TPA) released a study highlighting the 12 worst networks. The study outlined how these government networks put taxpayer dollars at risk and explained why local lawmakers should not compete with private sector job creators to provide broadband and fiber service. As a follow up to that report, the Taxpayers Protection Alliance Foundation (TPAF) just launched a new website with a map outlining 215 government internet failures. The website details how much taxpayers in cities from California to Connecticut have lost when their local leaders decided to enter the market for internet and cable. Combined with the “Dirty Dozen” study issued last July, which found that in 12 cities alone local officials wasted $2 trillion in taxpayer revenue, it is clear Pai’s position is the right one.

As states look to ways to contain or fix looming budget shortfalls, there are a number of legislatures around the country that are looking to raise taxes in a number of ways that will only harm consumers and taxpayers, while likely falling short on projected revenue leaving the states in a position where taxpayers will continue to be at risk from lawmakers eager to fill the remaining budget gaps. In Indiana, lawmakers are considering a new sales tax bill that is not only unconstitutional, but will discourage entrepreneurs from doing business in the state of Indiana and will likely result in retaliatory measures from tax-heavy states including nearby neighbor Illinois. TPA signed a letter to Indiana lawmakers sent by the R Street Institute opposing the bill, S.B. 545 and TPA will continue to fight against any attempts to increase taxes in the states and at the federal level.

The Taxpayers Protection Alliance (TPA) has long advocated that the private sector has the tools to expand wireless deployment throughout the country and now there is strong momentum to meet the needs of millions wireless consumers nationwide, while protecting taxpayers. TPA continues to push for more innovation when it comes to how these new networks are deployed and it is up to government to get out of the way and let the market do what it does best in these instances. TPA is hopeful that state legislatures will begin to put in place uniform rules that will encourage investment and innovation in these new networks. Keeping that in mind, TPA recently sent the following letter to the Virginia General Assembly urging them to pass legislation (SB 1282) that would create a set of standards allowing for 5G development and deployment, which would bring better technology and service to wireless consumers all across the country and spare taxpayers the risk of exposure and increased government bureaucracy.

WASHINGTON, DC – The Taxpayers Protection Alliance Foundation (TPAF) today unveiled Broadband Boondoggles, a comprehensive collection of information about taxpayer-funded government internet projects. Broadband Boondoggles is an online interactive map displaying information such as cost to taxpayers, debt, revenues, number of customers, and other facts related to more than 200 municipal broadband internet projects across America. The data contained in Broadband Boondoggles indicates publicly funded internet projects are a universal failure. Government broadband networks cost American taxpayers billions of dollars a year while failing to stimulate economic growth, falling short of projected customer and revenue numbers, struggling to keep up with advancements in technology, and using tax dollars to compete against existing private companies, TPAF discovered.

Only ten weeks ago, taxpayers flocked to the ballot boxes to win a respite from the tired tax-and-spend proposals of federal and state politicians. Any celebration seems to be premature, though, as governors of all political stripes unveil expensive budget proposals for the coming year. New York Governor Andrew Cuomo (D) is among the biggest offenders, laying out what the Buffalo News calls a “cornucopia of tax and fee hikes.” Exhibit A of this tax smorgasbord is an audacious attempt to bailout three nuclear power plants. Cuomo’s plan would cause a rate increase for New York electricity ratepayers. Taxpayers will also be on the hook for an increase in electricity costs for public buildings. Another misguided idea is to expand sales taxes on products sold on the internet, regardless of the physical location of the seller. The Governor claims that the expanded tax would increase revenue by more than $200 million in the next two years, but this math fails to take economic incentives into account. Unlike older shoppers beholden to their favorite brick-and-mortar locations, younger web-savvy customers can easily ditch large internet marketplaces (like Etsy) in response to a tax hike. The biggest losers will be fledgling digital entrepreneurs, who sell their products on well-known internet venues to avoid large fixed expenses like rent.

As 2017 gets into gear, state legislators and governors are crafting budgets and struggling to stretch out dwindling tax dollars. While roads, schools, and police departments are typically on the top of spending wish lists, another priority, taxpayer-funded broadband has increasingly turned the heads of lawmakers. Some non-profit and advocacy groups have increasingly pushed for broadband investments over the past ten years, advocating for municipal and state-level network expansions. Given the continued failures of taxpayer-funded networks, state legislators should stay away from spending any tax dollars on these boondoggles.

The New Year has begun, and after saying goodbye to 2016, taxpayers are ready to welcome 2017. While many people resolve to shed a few pounds and break some bad habits, this year’s list of resolutions highlights all of the major issues that the Taxpayers Protection Alliance (TPA) will focus on throughout the year.

Congress

The resolution for Congress in 2017 is clear: No More Excuses. Washington (including the incoming Trump administration) have no more excuses for not getting things done for taxpayers. On a wide range of issues, including tax reform and regulatory reform, members of the House and Senate can longer make excuses for not doing the necessary work to fix some of the major problems impacting taxpayers. It is time for Congress to get to work. For more on Congress, click here.

In the 1990 Oscar nominated film “Field of Dreams,” Kevin Costner’s character hears a promise from above: “If you build it, he will come.” Viewers, and Costner, aren’t sure who “he” is, but it’s one of the most memorable movie lines of all time and is enough to get Costner to level his cornfield and build a ball field. That faith is enchanting in the movies, but in real life can be problematic. KentuckyWired, the Bluegrass State’s government-owned broadband network, is a great example of real life being out of tune with fantasy. Upon taking office, Gov. Matt Bevin seemed to -- wisely -- be pulling back from this project, which is now more than a year behind schedule. Now he has reversed that position and basically told taxpayers in a press conference earlier this year, “If the state builds it, we’ll find a way to pay for it.”

A version of this op-ed was recently published in the Sun Prairie Star

Across the country, public officials are continuously duped into following the siren call of government-owned broadband systems. While it is certainly tempting to score political points with constituents who initially benefit from high-speed internet, these short-term gains are invariably canceled out by long-term costs that bedevil those same constituents. That’s why city officials in Sun Prairie, Wisconsin now have an opportunity to be trendsetters. Instead of pressing ahead with its current broadband initiative, they ought to carefully consider the examples of recent history and reverse course. When a project is government-owned, this also means it is taxpayer-funded and that’s a problem when construction costs skyrocket and subscription numbers do not keep up with projections. Guess who foots the bill when that happens? Taxpayers, or course. And, with a recent vote to approve an additional $4.5 M for project expansion in Sun Prairie, it is important to look at what has happened across the country with these projects.

As people celebrate the holidays in different ways across the country, the Taxpayers Protection Alliance is celebrating Festivus. The holiday created by the television show “Seinfeld” challenges all the normal rules of gift giving and decorations and is essentially a day of telling people why you’re upset with them about the choices they’ve made over the last year.

Airing of Grievances

The first tradition of Festivus is “the airing of grievances.” This part of Festivus expresses the ways that taxpayers have been disappointed over the last year. While there could have been an entire book written on taxpayer grievances, here are just a few grievances that taxpayers have with bureaucrats and lawmakers.

Below is testimony from Carl Szabo, Senior Policy Counsel with NetChoice, stating opposition to the Tennessee Department of Revenue Proposed Regulation 1320-05-01-.63; 1320-05-01-.129 – Creating a New Tax Rule. The testimony was given on December 14, 2016 and it can also be found online here.

We ask you to reject the Department of Revenue’s Regulation 1320-05-01-.63; 1320-05-01-.129 (“Rule”) as it creates costs, burdens, and new taxes on Tennessee citizens. This Rule’s problems began with its introduction and will continue through the expected legal battles. And if the Rule were to survive constitutional challenges, it would impose new burdens on your businesses and citizens.

Finally, a government report that doesn’t fully embrace the notion of taxpayer-financed municipal broadband services. The Tennessee Advisory Group on Intergovernmental Relations (TACIR) recently posted a draft study (the final study is expected to be released some time early in 2017) on broadband access and investment on its website. The report outlines several municipal broadband failures and, while it does suggest that electrical cooperatives work with cities to provide broadband service directly to consumers, it strongly urges municipal leaders not to create their own taxpayer-financed networks.

July 1st marks the beginning of the fiscal year for states across the country, and with that comes the end for many legislative sessions where budgets have been completed and difficult choices on spending have been made. Unfortunately, many states have defaulted to the tired and repeated mistake of taxing tobacco products and some legislatures are even looking to go after those who partake in vaping with new taxes on what is a growing industry, the last thing it needs is excise taxes to harm that potential. This is sadly a bipartisan affair, as states run by Democrats and Republicans are getting in on the haphazardly scheme of taxing tobacco and vapor products. Here are some of the states that have done a disservice to the taxpayers that put them in office by enacting these misguided policies that do more harm than good.

The more things change, the more they stay the same. This is an oft-repeated line, especially when it comes to elected officials and policy prescriptions. Over the years taxpayers have been subject to policies that have robbed their wallets, while doing little to address the real concerns of working families. This logic is especially true for Washington and Alabama considering that the Governors of those respective states have called for an increase in tobacco taxes. Lavendrick Smith at The Olympianoutlined details of the proposal from Washington Governor Jay Inslee (D). The Washington State Senate has introduced legislation, Senate Bills 5729 and 5808, which would impose higher taxes on cigarettes and create new taxes on E-cigarettes. This would be a costly reality for taxpayers, while doing little to address the problems that Gov. Inslee is looking to fix. The increase would push the state’s tax to $3.53 per pack, making it the second highest only to New York’s $4.35 tax per pack. It is unfathomable that Gov. Inslee would lean on old failed policies that will disproportionately harm the working class, and would in turn breaking pledges made when first running for the office he now holds.

Stephen Adkins is a research fellow at the Taxpayers Protection Alliance. Which governors do best at protecting taxpayers’ money and controlling state spending? That’s the questions answered by the Cato Institute’s 12th biennial “Fiscal Policy Report Card on America’s Governors.” Residents of North Carolina, Kansas, Maine, and Indiana are in good hands, according to the report card. The study finds that, while some state executives responded to widespread upticks in state revenues by lowering tax burdens on their constituents, others, predictably, have decided to go on spending sprees. » Read More

The evolution of the cellular phone has come a long way, so much so that what consumers use their phones for has become a crucial part of how many of us go about our daily lives. Unfortunately with that innovation and advancement in technology that has taken us from the flip phones of yesterday to the smartphones of today, comes a heavy tax burden from federal and state government. Regardless of what state someone resides in, they’re paying excessive taxes for something that has become commonplace in their life. On October 8, the Tax Foundation released a study that examines wireless tax rates for each of the fifty states. Joseph Henchman of The Tax Foundation and Economist Scott Mackey, authors of Wireless Taxation in the United States 2014, give plenty of information to sift through in this report.